Information ambiguity and firm value

K. Hussinger, S. Pacher

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

A recent theoretical model by Epstein and Schneider (2008) predicts that a firm’s assets will be undervalued by the market if the information surrounding these assets is ambiguous. The model further predicts that this effect is amplified if the underlying fundamentals are volatile. This article provides an empirical test.
Original languageEnglish
Pages (from-to)843-847
Number of pages5
JournalApplied Economics Letters
Volume22
Issue number10
DOIs
Publication statusPublished - 2015

JEL classifications

  • d80 - Information, Knowledge, and Uncertainty: General
  • g32 - "Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill"

Keywords

  • Epstein and Schneider (2008)
  • information ambiguity
  • market value
  • volatile fundamentals
  • business
  • information
  • market
  • modeling

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